LIC Single Premium Endowment Plan (717) is a type of life insurance policy offered by the Life Insurance Corporation of India (LIC). Here are the key features of LIC Single Premium Endowment Plan: Age: 0 (30 days) -65
Single Premium Payment: As the name suggests, this plan requires the policyholder to pay a lump sum premium amount at the inception of the policy. This eliminates the hassle of making regular premium payments.
Endowment Plan: It is an endowment policy, which means it provides both insurance coverage and savings. The policyholder receives a lump sum amount at the end of the policy term (maturity) or in case of unfortunate demise during the policy term (death benefit).
Maturity Benefit: If the policyholder survives the policy term, a maturity benefit is paid out. This maturity benefit includes the sum assured along with any bonuses or guaranteed additions, depending on the plan's features.
Death Benefit: In the event of the policyholder's demise during the policy term, the death benefit is paid out to the nominee. This death benefit typically includes the higher of the sum assured or the policy's guaranteed surrender value, along with any bonuses or guaranteed additions, as per the plan's terms.
Bonus: LIC Single Premium Endowment Plan may participate in the profits of the corporation, and policyholders are eligible to receive bonuses declared by LIC. These bonuses enhance the policy's maturity or death benefits.
Loan Facility: Policyholders can avail of loan facilities against the surrender value of the policy, subject to terms and conditions specified by LIC. This provides liquidity in times of financial need.
Surrender Value: The policy acquires a surrender value after the payment of the premium. Policyholders have the option to surrender the policy and receive the surrender value, subject to policy conditions.
Tax Benefits: Premiums paid towards LIC Single Premium Endowment Plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Additionally, the maturity proceeds or death benefit received under the policy are also eligible for tax benefits under Section 10(10D), subject to conditions specified in the Income Tax Act.
LIC Single Premium Endowment Plan is designed to provide financial protection and savings opportunities through a single premium payment. It offers the assurance of a lump sum payout at maturity or death, along with the potential to earn bonuses over the policy term. Individuals interested in purchasing LIC Single Premium Endowment Plan should carefully review the policy features, terms, and conditions before making a decision.
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